Canon 2011 Annual Report Download - page 82

80 F I N A N C I A L S E C T I O N >N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Deferred tax assets:
Inventories
Accrued business tax
Accrued pension and severance cost
Research and development'costs capitalized for tax purposes
Property, plant and equipment
Accrued expenses
Net operating losses carried forward
Other
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries
Net unrealized gains on securities
Tax deductible reserve
Financing lease revenue
Prepaid pension and severance cost
Other
Total deferred tax liabilities
Net deferred tax assets
2011 2010
Millions of yen
Thousands of
U.S. dollars
2011
¥ 18,885
3,227
90,025
12,898
31,624
37,992
31,967
38,220
264,838
(33,788)
231,050
(6,783)
(1,180)
(6,385)
(40,878)
(2,224)
(26,334)
(83,784)
¥ 147,266
¥23,836
6,200
78,552
14,740
41,737
35,823
28,373
52,869
282,130
(35,307)
246,823
(8,215)
(2,119)
(6,038)
(37,353)
(2,018)
(35,132)
(90,875)
¥155,948
$ 242,115
41,372
1,154,167
165,359
405,436
487,077
409,833
489,999
3,395,358
(433,179)
2,962,179
(86,962)
(15,128)
(81,859)
(524,077)
(28,513)
(337,615)
(1,074,154)
$1,888,025
December 31
Within one year
After one year through five years
After five years through ten years
After ten years through twenty years
Indefinite period
Total
Millions of yen
Thousands of
U.S. dollars
¥2,588
5,097
37,199
42,402
29,295
¥116,581
$ 33,179
65,346
476,910
543,615
375,578
$1,494,628
The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December
31, 2011 and 2010 are presented below:
The net changes in the total valuation allowance were a
decrease of ¥1,519 million ($19,474 thousand) for the year
ended December 31, 2011, and increases of ¥13,119 million
and ¥11,371 million for the years ended December 31, 2010
and 2009, respectively.
Based upon the level of historical taxable income and
projections for future taxable income over the periods
which the net deductible temporary differences are
expected to reverse, management believes it is more likely
than not that Canon will realize the benefits of these
deferred tax assets, net of the existing valuation allowance,
at December 31, 2011.
At December 31, 2011, Canon had net operating losses
which can be carried forward for income tax purposes of
¥116,581 million ($1,494,628 thousand) to reduce future
taxable income. Periods available to reduce future taxable
income vary in each tax jurisdiction and generally range
from one year to twenty years as follows: